Twin Cities Investor Gets 25 Years for Ponzi Scheme
A former Twin Cities man was sentenced to 25 years in prison for his involvement in a Ponzi scheme that affected more than 900 investors. U.S. District Court Judge James Rosenbaum handed down the sentence on Tuesday morning, August 24, 2010, in a Minneapolis Federal Court.
Trevor Cook was found guilty in a federal investment scheme that cheated more than 900 investors out of an estimated $190 million between January 2007 and July 2009. Cook schemed unsuspecting investors by supposedly selling investments in a foreign currency-trading program. However, a major portion of the funds he collected were used to pay previous investors, acquiring ownerships in two trading firms and for personal purposes, such as satisfying gambling debts and purchasing a large home in the Minneapolis area.
Of the victims, six lost their entire life savings in the Ponzi scheme. Many claimed that Cook’s actions have “sentenced” them to poverty.
Authorities placed Cook in jail in January 2010 for his failure to cooperate with regulators and for refusing to hand over approximately $25 million dollars in frozen assets. He also refused to relinquish $670,000 in cash, two Lexus cars and a collection of pricy watches. He has since agreed to help regulators in the fear that he might face additional legal action.
The Law Firm of David P. Meyer & Associates
If you have lost money due to a Ponzi scheme, you should contact one of our experienced investment fraud attorneys for a free case evaluation. You can reach us by calling toll-free (888) 390-6491 or filling out our online form. Our lawyers are licensed in California and Ohio and we represent investors nationwide in securities arbitration and litigation claims.